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Preliminary Windy Gap Financing Options
<br />Windy Gap Financing Options
<br />Term
<br />(yrs)
<br />Estimated
<br />Rate
<br />Cash
<br />(2018)
<br />Amount
<br />Financed
<br />Approx. Annual
<br />Payment
<br />(Current Model
<br />$905,000)
<br />Approx. Total
<br />Payments
<br />Projected Utility
<br />Rate Impacts
<br />(2018-2024)
<br />Option Al
<br />Joint Financing w/ Cash:
<br />30
<br />3.5%
<br />$2,500,000
<br />$9,130,000
<br />$497,000
<br />$14,910,000
<br />0%
<br />Joint Financing: CWCB Loan
<br />30
<br />3.1%
<br />$2,860,000
<br />$148,000
<br />$4,440,000
<br />0%
<br />Joint Financing: Total
<br />30
<br />3.1%
<br />$2,500,000
<br />$11,990,000
<br />$645,000
<br />$21,850,000
<br />(+0.5%/yr)
<br />Option A2
<br />Joint Financing: Sr Loan
<br />30
<br />3.5%
<br />$2,500,000
<br />$11,630,000
<br />$632,000
<br />$18,960,000
<br />0%
<br />Joint Financing: CWCB Loan
<br />30
<br />3.1%
<br />$2,860,000
<br />$148,000
<br />$4,440,000
<br />-3.55%
<br />Joint Financing: Total
<br />30
<br />3.1%
<br />$0
<br />$14,490,000
<br />$780,000
<br />$23,400,000
<br />(+0.5%/yr)
<br />Option B1
<br />Self Financing w/ Cash:
<br />30
<br />3.0%
<br />$2,500,000
<br />$11,990,000
<br />$612,000
<br />$20,860,000
<br />0%
<br />Option B2
<br />Self Financing:20
<br />30
<br />2.75%
<br />$0
<br />$14,490,000
<br />$952,000
<br />$19,040,000
<br />+0.7%
<br />(+0.1 %/yr)
<br />Impact to Joint Financing if Step Up Occurs (Max step 35%, increase in storage)
<br />Joint Financing: Sr Loan
<br />30
<br />3.5%
<br />$15,700,500
<br />$854,000
<br />$25,620,000
<br />+3.55%
<br />Joint Financing: CWCB Loan
<br />30
<br />3.1%
<br />$3,861,000
<br />$200,000
<br />$6,000,000
<br />(+0.5%/yr)
<br />Joint Financing: Total
<br />$0
<br />$19,561,500
<br />$1,054,000
<br />$31,620,000
<br />Advantages
<br />Joint Financing (A)
<br />• Possible Less Debit Coverage
<br />• CWCB Subordinate Loan
<br />• Shared/Lower Bond/Rating Costs
<br />Self Financing (B)
<br />• Possible Lower Rate
<br />• No Step Provision
<br />• Term/Structure Control
<br />Items Needing Finalization
<br />• Rates
<br />• Debit Coverage Requirements
<br />• Allotment Contract (w/ step-up provision)
<br />• Bond consultant (if needed)
<br />4
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